See how your contributions can add up
The standard contribution rate
The standard savings rate for a WorkLife Account is 5% of your gross pay (the amount you earn before taxes), and that amount is deducted from each paycheck.
Standard annual increase
Unless you choose otherwise, your savings rate will go up automatically by 1% each January, so long as you have been enrolled for at least six months. You can elect not to have your savings rate increase in any given year.
For example, if you start out at 5%, next year your savings rate will increase to 6%. Your savings rate will increase each year thereafter, until you reach 10%.
Change your rate anytime
You can change your savings rate at any time to as little as 1% or up to a maximum of 100%, within IRS limits. Contributions are made post-tax, and your employer can deduct contributions only from the amount available in your paycheck after other payroll deductions required by law have been made.
Unsure of how much to save?
If you’re not sure, you can just rely on the standard contribution rates that most people will use. But if you want to make your own calculations and your own choice, we have a number of tools and resources to help you plan, as well as our retirement savings calculator. You can also talk to a financial or tax advisor to help you assess your options.
Investments with an assumed 5% annual rate of return*
*This hypothetical example shows the potential of what an initial investment of $500 and a monthly contribution at a 5% projected annual rate of return could become over a period of time. Note this is just an example; your actual results may be more or less.
For most people, the maximum contribution is $6,500 per year if you’re under age 50, and $7,500 per year if you’re 50 or older.
Your WorkLife Account is a Roth IRA, so the total amount you save must be within the federal government’s Roth IRA contribution limits. In 2023, the contribution limits are $6,500 per year to a Roth IRA (and $7,500 per year if you are age 50 or older), as long as you earn at least $6,500 in wages.
The amount of money you can contribute to a Roth IRA depends on how much you earn and your Modified Adjusted Gross Income (MAGI), which is essentially what you earn at your job, plus any other income from investments and other sources. If you file taxes as a single person and your MAGI is under $125K in 2023, or if you are married and file jointly and your MAGI is under $198K, you will be able to contribute the maximum amount of $6,500 ($7,500 if you’re 50 or older). See this IRS publication for more information and an easy-to-follow worksheet for computing your MAGI.
Tax Year 2023
Maximum contribution limit
Age 49 or younger
Age 50 or older
|Single filer||Less than $125,000||$6,500||$7,500|
|Married filing jointly||Less than $198,000||$6,500||$7,500|
*Modified Adjusted Gross Income (MAGI)